When Michael Burry speaks, investors tend to listen. The man who famously predicted the 2008 financial crisis dropped a detailed investment thesis Monday evening arguing that Molina Healthcare Inc. (MOH) represents one of the best opportunities in the market right now.
His pitch? This isn't just another healthcare play. Burry went so far as to compare Molina to Warren Buffett's legendary Geico investment, suggesting that while Buffett's insurance company acquisition was a brilliant "steal," Molina actually offers a less risky profile with potentially better business prospects thanks to its focus on Medicaid programs, according to Business Insider, which reviewed the investment manager's Substack writeup.
A Better Path Than Apple?
Burry didn't hold back in his assessment. He highlighted Molina's impressive growth runway and track record of generating high returns on invested capital. Then he made a claim that will definitely turn heads: if he were "sitting on enough billions," he would simply buy the entire healthcare company outright because it "has a clearer path to significant double-digit long-term growth than Apple."
That's a bold statement considering Apple remains one of the world's most valuable companies. But Burry sees something special in Molina's business model and market position.
What Would A Young Buffett Do?
"Maybe Buffett, if he were in his 40s and only just ramping up his insurance investments, would buy it here for a much smaller Berkshire," Burry added, per Business Insider.
The thesis comes at an interesting time. Molina Healthcare (MOH) stock has experienced a significant drop recently, and the broader health insurance industry faces real headwinds including rising costs and shifting legislative priorities. But Burry remains decidedly bullish.
He views Molina's concentration on Medicaid and its efficient, agent-free business model as a "profitable niche" that can thrive even in a complex political landscape. Under CEO Joe Zubretsky's leadership, the company has executed a dramatic turnaround featuring stock buybacks and conservative accounting practices.
A Generational Opportunity?
Burry's most striking prediction concerns where the stock could go from here. He suggested that federal budget concerns might push MOH stock below $100, which "would be a generational buy at that price."
"Here we have the best loss ratio, the best expense ratio, the best win rate, and the most conservative accounting in one insurer," Burry said.
The market seems to be taking notice. Molina Healthcare shares climbed 4.16% to $173.46 in Tuesday's midday trading, according to market data.
